Interstate Ferry Fairness Act

Section 129(c) of title 23, United States Code, is amended—

(1) in paragraph (2)—

(A) by inserting (A) before The operation; and

(B) by striking on a route and all that follows through the period at the end and inserting on a route—;

(i) classified as a public road within the State and which has not been designated as a route on the Interstate System or on a public transit ferry eligible under chapter 53 of title 49; or

(ii) between 2 adjoining States and that connects one or more public roads.

(B) Projects under this subsection may be eligible for both ferry boats carrying cars and passengers and ferry boats carrying passengers only.

(2) in paragraph (3)—

(A) in subparagraph (A), by striking shall be and all that follows through the period at the end and inserting shall be—; and

(i) publicly owned or operated;

(ii) majority publicly owned, if the Secretary determines with respect to such majority publicly owned ferry or ferry terminal facility that the ferry boat or ferry terminal facility provides substantial public benefits; or

(iii) with respect to a ferry that operates between 2 adjoining States or a ferry terminal facility that supports such a ferry, privately owned or majority privately owned, if the Secretary determines with respect to such ferry or ferry terminal facility that the ferry boat or ferry terminal facility provides substantial public benefits or otherwise meets the foremost needs of the surface transportation system described in section 101(b)(3)(D).

(B) in subparagraph (B)—

(i) by striking Any Federal participation and inserting (i) Except as provided in clause (ii), any Federal participation; and

(ii) by adding at the end the following new clause:; and

(ii) Federal participation may involve the construction or purchase, for private ownership, of—

(I) a ferry boat that operates between 2 adjoining States; or

(II) a ferry terminal facility or any other eligible project under this section that supports such ferry boat.

(3) in paragraph (4)—

(A) by inserting (A) before The operating authority;

(B) by striking such ferry and inserting a publicly owned or a majority publicly owned ferry;

(C) by striking a privately operated toll ferry and inserting a privately operated toll ferry not subject to subparagraph (B); and

(D) by adding at the end the following new subparagraph:

(B) A privately owned or majority privately owned ferry operating between 2 adjoining States may charge a fare for passage on such ferry in an amount not more than the sum of an amount necessary to produce revenues sufficient to cover actual and necessary costs of operation, maintenance, repair, debt service, negotiated management fees, plus an amount that the Secretary determines is a reasonable rate of return for the ferry. All revenues derived therefrom shall be applied to such actual and necessary costs, except the ferry may retain the amount that the Secretary determines is a reasonable rate of return.

Section 133(b)(1)(B) of title 23, United States Code, is amended to read as follows:

(B) ferry boats and terminal facilities that are eligible for funding under section 129(c);

Section 147(c) of title 23, United States Code, is amended by striking public entities and inserting entities.

The amendments made by this section shall take affect with respect to a privately owned, or majority privately owned, ferry or ferry terminal facility for purposes of eligibility of the program under section 147 of title 23, United States Code, on the date that is 1 year after the date of enactment of this Act.